Dace DeKruif
Founder, Silver Strand Financial Planning
In the interview, Dace emphasizes the role of a financial mentor, distinguishing advice-giving from strategy-selling, inspired by Michael Kitces. Dace delves into the significance of clients' personal statements of financial purpose, steering away from mere goal-setting. He praises Sora Finance for offering comprehensive liability management, mirroring practices from his private banking background. Dace urges individuals to find a trusted advisor in times of uncertainty, emphasizing the importance of singular guidance amidst the multitude of financial information available.
Full transcript below:
Siddhartha: Welcome to Sora Spotlights, where we highlight some of the incredible advisors who are using Sora and delivering tremendous value to their clients. As always, you can reach out to the advisors highlighted in this interview directly if you are looking to drive growth in your own personal finances. We are joined today by Dace DeKruif, a CFP certified financial planner at Silver Strand Financial Planning, a firm he founded in 2021. Welcome, Dace.
Dace: Hi, how are you doing?
Siddhartha: I am doing well, thanks very much for joining us today. We're excited to have you on the show. Let's kick off talking about you and your background. How did you come about being an independent financial advisor, and maybe more importantly, why?
Dace: It's a long story. I've actually been in the industry for almost 20 years, most of which I spent working within banks as a financial advisor for clients in the Metro Detroit area. I found that I was doing a lot of work for clients who didn't necessarily need everything I was doing, especially in the last few years working with high net worth and ultra-high net worth clients. I had a passion to help families who weren't quite at that level yet and found many ways to provide the same level of service for those in the process of growing their net worth.
Siddhartha: That's great. Silver Strand Financial Planning was a dream you've had for about five years. Why did you decide to strike out on your own?
Dace: Silver Strand Financial Planning was a dream I had for about five years. Many advisors consider going out on their own, and after exploring different options, I realized that no one shared my vision for how I wanted to help clients. Instead of trying to fit into existing firms, I decided to build from scratch and create something that aligns with my vision for providing financial advice and guidance.
Siddhartha: I love that. On your website, you describe yourself as a financial mentor rather than just a financial advisor. What does that mean to you?
Dace: The term "financial mentor" comes from Michael Kitces's work. It goes beyond being a legal or regulatory designation; it's an approach to the business of financial advice. Being a financial advisor means providing advice, and clients pay for the advice itself. The product is the advice, not a specific financial product. I see my role as guiding clients, helping them realign their money towards their goals and purposes, ultimately transforming lives.
Siddhartha: That's a unique perspective. How do you see being a financial mentor related or different from the idea of a fiduciary?
Dace: A fiduciary operates in the client's best interest at all times. While many in the industry claim to be fiduciaries, I see it as a baseline. My role as a financial mentor starts from the advice level, focusing on understanding clients' financial purposes. We then filter in necessary strategies rather than starting from a strategy level and fitting advice around it.
Siddhartha: Fascinating. Let's talk about your process for working with clients. How do you build trust and determine if there's a mutual fit?
Dace: My initial conversations with clients revolve around their personal statement of financial purpose. I don't immediately ask for financial statements or numbers. Instead, we delve into what money means to them, understanding their deeper motivations. This allows us to align their goals with an overarching financial purpose. It's about understanding what clients want their lives to look like and developing goals to achieve that purpose.
Siddhartha: That personal statement of financial purpose sounds powerful. You've built your own tech stack, and Sora Finance is one of the tools you use. How has your experience been, and why is liability management important in your practice?
Dace: Sora has been a game-changer. Coming from the banking side, I always had access to clients' liabilities. Sora allows me to actively manage liabilities for everyday clients, making the liability side of the balance sheet as important as, if not more than, the asset side. It provides a holistic view, especially as liabilities like student loans become increasingly significant. Sora makes financial planning easier, offering a better service level by understanding and tracking clients' liabilities.
Siddhartha: It's great to hear that Sora has been beneficial for you. Finally, in the current uncertain times, what advice would you give to clients or potential clients regarding their finances?
Dace: My number one piece of advice is to find someone they trust to work with. In a world filled with information, having a trusted voice is crucial. Find a person, not a TV channel or personality, whom you can talk to and trust. Be open and honest with them, and let them guide you through making the right decisions. Despite the uncertainty, having a guide can help you navigate and move forward.
Siddhartha: That's solid advice. Thank you, Dace, for sharing your insights and experiences with us today. It's been great having you on the show.
Dace: Thank you, Siddhartha. It's been great.